Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz chaired a Cabinet session Monday at Riyadh’s Al-Yamamah Palace. King Abdullah briefed the Cabinet on his meetings with South African President Thabo Mbeki and King Hamad bin Isa Al-Khalifa of Bahrain during their visits to the Kingdom last week. King Abdullah also briefed the Cabinet on talks he held with world leaders, state envoys, and representatives of international institutions.

The Cabinet welcomed the formation of the Palestinian unity government and called upon nations that are influential in the Middle East peace process to recognize it as a legitimate governing force. The Cabinet also requested these nations to compel Israel to respect international resolutions that call for an end to the suffering of the Palestinian people.

On the issue of the upcoming Arab League summit in Riyadh, the Cabinet expressed high hopes that the Riyadh summit would meet the aspirations of the Arab people by unifying the Arab world and their causes, affirming a common social and cultural identity, boosting economic integration and facilitating trade throughout the region. The Cabinet expressed optimism that the Riyadh Declaration will create a genuine and practical foundation for increased regional cooperation.

The Cabinet also endorsed the status of the Arab Peace and Security Council, which was approved by the Arab Summit on March 29, 2006 to settle disputes between member states and set up appropriate measures to deter aggression from any source.

On domestic issues, the Cabinet approved the establishment of the Saudi Capital Market Company (Tadawul) with a market capitalization of SR 1.2 billion [$320 million]. Tadawul will be converted into a 120 million-share joint stock company wholly owned by the Public Investment Fund. Shares of Tadawul will be offered for public subscription at a later date to be determined.

The Cabinet also authorized the Ministry of Communication and Information Technology to negotiate a draft memorandum of understanding with the Ministry of Information and Communication of the Republic of Korea to future cooperation in the field of communications and information technology.

In addition, the Cabinet approved the appointment of Ibrahim bin Abdulaziz bin Abdullah al-Subaihi as a security consultant at Riyadh Governorate; Mohammed bin Ameen bin Mohammed Sindi as Director General of the Competitiveness Protection Council at the Ministry of Commerce and Industry; and Dr. Adel bin Siraj bin Salih Mirdad as minister plenipotentiary at the Ministry of Foreign Affairs.